The Effect of the Proportion of the Board of Commissioners, Audit Committee, Asymmetric Information and Company Size on Earnings Management Practices

The objective of this study was to empirically determine whether there is a correlation between the proportion of the board of commissioners, audit committee, information asymmetry, and company size with earnings management in the consumer goods manufacturing companies sector listed on the Indonesia Stock Exchange during the years 2010-2012. The study aims to clarify any potential links between the identified variables. Data was extracted from the financial statements of each sample company, which were publicly available on the websites www.idx.co.id and ICMD. The study employed purposive sampling, gathering data from 15 companies over a period of three years, resulting in a total of 45 observations. The independent variables include the proportion of the board of commissioners, audit committee, information asymmetry, and company size, while earnings management serves as the dependent variable. The findings from our study utilizing panel data and regression models demonstrate that neither the proportion of the board of commissioners, audit committee, information asymmetry, nor company size have any impact on earnings management either partially or concurrently.

Robust/Optimal Control of Minimum-Phase Nolinear Systems

This thesis proposes a framework that provides suboptimal control laws for a class of minimum-phase nonlinear systems. This class includes systems whose state dynamics are an algebraic sum of their linear and nonlinear sub-dynamics. We propose a systematic method of designing a robust and optimal control law which essentially consists of two components a linear and a nonlinear. It is shown that the proposed control scheme achieves stabilization while providing suboptimality for the class of systems under consideration. Furthermore, the framework provides for a mechanism which is suitable for handling tracking and regulation problems for the class of minimum-phase nonlinear systems by using the Internal Model Principle. Astrikingfeatureoftheproposedframeworkistheflexibilityofstartingwithsynthesizing a Linear-Quadratic-Regulator for linear sub-dynamics of the system and then including a nonlinear control component that stabilizes the nonlinear sub-dynamics of the system. The flexibility offered by the proposed framework is applied firstly to a general class of linear parameter-varying and linear time-varying systems. We extend the flexibility obtained for these two systems to the class of minimum-phase nonlinear systems which are decomposable through existence of an appropriate transformation into their linear and nonlinear sub dynamics. Moreover, we also propose a simplified approach to obtain an approximate yet practical solution to the nonlinear optimal control problem by replacing the requirement of solving Hamilton-Jacobi-Bellman equations with that of the Riccati partial differential equations,andthensynthesizingthenonlinearcomponentofthecontrollawtoachieverobust and suboptimal stabilization